Snapchat’s parent company reported stalled revenue growth and a large net loss for the final three months of 2022, as it confronts tighter advertiser budgets amid broader economic uncertainty. Snap’s quarterly revenue was just shy of $1.3 billion, essentially flat from the year prior. For the full year, Snap’s revenue grew 12%, a slower rate that the company attributed to “rapid deceleration in digital advertising growth.” The situation appears to be even worse in the current quarter.
Snap’s earnings could be a concerning bellwether for the other tech giants that rely on the health of the digital ad market, including Facebook-parent Meta and Google-parent Alphabet, both of which are set to report results this week. Shares of Meta and Alphabet dipped slightly in after-hours trading Tuesday following Snap’s results. Snap in August became one of the first big tech firms to announce major layoffs when it said it would cut 20% of its staff.